![]() Many self-employed people work from a home office. The deduction covers your own health insurance premiums as well as any coverage you purchased for spouses and dependents. But if you’re self-employed and have a net profit for the year, you can also claim the amount you paid toward your health insurance premiums on your income tax return as an adjustment to income. Self-employed workers need to purchase their own health insurance coverage, which can be a big expense. The IRS has more information about self-employment tax deductions on its website. Luckily, the IRS allows freelancers and entrepreneurs to deduct the amount equivalent to what an employer would cover if you were an employee, which is half of the self-employment tax contributions. If you’re self-employed, you are obligated to pay 15.3 percent of your earnings toward the self-employment tax, which covers Medicare and Social Security. Self-Employment TaxĪs a self-employed person, you have to pay more for Medicare and Social Security taxes, because you don’t have an employer splitting the cost with you. Tax Deductions for Independent Contractors Top 10 Tax Deductions for Self-Employed Workers 1. Top 10 Tax Deductions for Self-Employed Workers These topics will introduce you to important tax deductions for self-employed workers: If you’re self-employed, there are a range of expenses related to your home and business that are tax deductible, outlined in the guide below. Send invoices, track time, manage payments, and more…from anywhere.įreelancers and entrepreneurs should be aware of all the tax deductions available to self-employed workers, so you can save time and money during tax season. Pay your employees and keep accurate books with Payroll software integrationsįreshBooks integrates with over 100 partners to help you simplify your workflows ![]() Set clear expectations with clients and organize your plans for each projectĬlient management made easy, with client info all in one place Organized and professional, helping you stand out and win new clients Track project status and collaborate with clients and team members Time-saving all-in-one bookkeeping that your business can count on Tax time and business health reports keep you informed and tax-time readyĪutomatically track your mileage and never miss a mileage deduction again Reports and tools to track money in and out, so you know where you standĮasily log expenses and receipts to ensure your books are always tax-time ready Quick and easy online, recurring, and invoice-free payment optionsĪutomated, to accurately track time and easily log billable hours ![]() Wow clients with professional invoices that take seconds to create
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